Factors driving wind power development in the United States

In the United States, there has been substantial recent growth in wind energy generating capacity, with growth averaging 24 percent annually during the past five years. About 1,700 MW of wind energy capacity was installed in 2001, while another 410 MW became operational in 2002. This year (2003) shows promise of significant growth with more than 1,500 MW planned. With this growth, an increasing number of states are experiencing investment in wind energy projects. Wind installations currently exist in about half of all U.S. states. This paper explores the key factors at play in the states that have achieved a substantial amount of wind energy investment. Some of the factors that are examined include policy drivers, such as renewable portfolio standards (RPS), federal and state financial incentives, and integrated resource planning; as well as market drivers, such as consumer demand for green power, natural gas price volatility, and wholesale market rules.